Another day, another stock offering from Cellectar Biosciences.
The Madison, WI-based biotech, which announced a $3.3 million stock offering in September 2015 and then said in April that it had raised $8 million from investors, now says it’s raising another $8 million in an offering that’s expected to close on Nov. 29. Cellectar’s pipeline includes several early-stage product candidates for cancer treatment.
Shares in Cellectar (NASDAQ: CLRB) fell following Wednesday’s announcement. The company’s stock price closed the trading day at $1.49 a share, down more than 31 percent from Tuesday’s closing price of $2.16 a share.
Two firms Cellectar chose to help manage the offering are Miami-based Ladenburg Thalmann and New York-based Aegis Capital, according to a news release.
Earlier this month, Cellectar reported earnings for the three-month period that ended Sept. 30. The company said it ended the third quarter with $5.6 million in cash and cash equivalents. CFO Chad Kolean said that the cash Cellectar had on hand “should fund the company’s planned operations into the first quarter of 2017,” according to a Seeking Alpha transcript of a Nov. 11 conference call with investors.
Cellectar may have decided to hold another offering in hopes of keeping the company’s stock price above $1, which is a requirement for being listed on the Nasdaq exchange. That was one of the explanations Cellectar gave in March when it announced a 1-for-10 reverse stock split. Under the terms of that arrangement, stockholders were given one share for every 10 shares in the company they owned. Cellectar’s stock price has remained above $1 since it announced the split.
The company’s current market cap is about $7.5 million.